Report: Telangana tech startups’ funding drops 78% to $99 million in 2023
- ByStartupStory | February 20, 2024
Telangana’s tech startup funding saw a drastic 78% decline in 2023, dropping to $99.2 million from $459 million in 2022, as stated in the Tracxn Geo Annual Report of 2023. According to the report, “The plunge in funding is primarily due to a global slowdown caused by macroeconomic trends and geopolitical factors.”
Despite the significant drop, Telangana’s tech startups have amassed a total of $2.7 billion in funding to date. However, early-stage funding in the southern state plummeted by 71% to $80.1 million in 2023.
In 2023, only two acquisitions were observed in the Telangana Tech space, down from nine in 2022. The top-funded sectors included Aerospace, Maritime & Defense Tech, EdTech, and Enterprise Applications. According to the Tracxn report, “Edtech firms attracted investments worth $33 million in 2023 in Telangana, marking a 65% increase in total funding compared to 2022.”
CIE IIITH, T-Hub, and Indian Angel Network emerged as the most active investors in the Telangana Tech landscape. However, “Temasek was the top early-stage investor last year,” while We Founder Circle, Equanimity Investments, and Venture Catalysts were the most active investors in seed-stage investments.
The decline in funding isn’t unique to Telangana, as several other Indian states also experienced significant drops in tech startup funding in 2023. For instance, funding in the Delhi NCR tech sector fell by 61% to $1.5 billion. Similarly, “Maharashtra recorded only $2.1 billion in funding in 2023, the lowest funding the region has witnessed in the last five years.”
The Karnataka Tech startup ecosystem received a total funding of $3.4 billion in 2023, marking a 72% plunge from the $12.2 billion raised in 2022. On the other hand, “Tech startups based in Tamil Nadu secured a total funding of $255 million in 2023,” while Gujarat recorded $139 million in funding during the same period, according to data by Tracxn.
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